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The following is a list of the top high-yield companies that Warren Buffett is holding according to Berkshire Hathway’s most recent 13F filing with SEC.

Stock

Symbol

Shares Held - 09/30/2011

Dividend Yield

GlaxoSmithKline Plc

GSK

1510500

4.80%

M&T Bank Corp.

MTB

5382040

3.90%

ConocoPhillips

COP

29100937

3.80%

Sanofi-Aventis

SNY

4063675

3.80%

Intel Corporation

INTC

9333000

3.60%

Kraft Foods Inc.

KFT

89746708

3.20%

General Electric Co.

GE

7777900

4.10%

I like Sanofi-Aventis and Kraft Foods the most among above stocks. Sanofi is a global pharmaceutical company with its headquarters in Paris, France. It has five divisions: Pharmaceuticals, Vaccines, Generics, Animal Health and Consumer Health. Sanofi is trading at a discount to its peers at a forward PE of 9x and has a dividend yield of ~3.8%. I believe the company is undervalued and the market is not pricing its 2013 onward growth outlook driven by new businesses: vaccines, emerging markets, consumer health, animal health, generics.

Kraft Foods Inc. manufactures and markets packaged food products, including biscuits, confectionery, beverages, cheese, convenient meals and various packaged grocery products. Kraft is trading at a forward PE of 14x. Its EPS forecast for the current year is 2.27 and next year is 2.52. According to the consensus estimates, Kraft’s top line is expected to grow 10.40% in the current year and 3.10% next year. Trading at a forward PE of 14, Kraft’s valuations are in line with its peers despite its above-average growth rate. I believe this will change going forward as Kraft is planning to split up its high-growth Snacks business and the stable return Grocery business in FY12. This will highlight the above peer growth profile of the global snacks business and hence help the company achieve a better valuation.

One stock in the above list that I would like to avoid is GE. GE is likely to see headwinds from weak pricing, a difficult European environment and decelerating growth in emerging markets. At the current price, the risk reward ratio appears to be skewed to the downside.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 7 High-Yield Stocks From Warren Buffett's Top Holdings